Free In/Liner Out (FILO)

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What is Free In/Liner Out (FILO)?

Free in/liner out (FILO) is a contract term that allocates loading and unloading costs between the shipper and the carrier. Under FILO, the shipper pays for loading cargo onto the vessel at origin, while the carrier covers the cost of discharge at the destination port.

This allocation gives shippers greater control over origin-side logistics and allows carriers to manage unloading where they have established local processes. By clearly defining who is responsible for which costs, FILO improves cost visibility and reduces the risk of billing disputes.

Cost Responsibilities Under FILO

  • Shipper (origin): Responsible for inland transport to port, documentation, and loading and handling costs at origin.

  • Carrier (destination): Responsible for discharging the cargo, local port arrangements, and associated unloading costs.

This alignment lets each party control the activities where they usually have the greatest operational influence.

Related Terms

Each variation changes who bears cost exposure and operational control, so the choice depends on cargo type, port capability, and commercial preference.

  • Free in / free out (FIFO): Shipper pays for both loading and unloading.

  • Liner in / free out (LIFO): Carrier pays for loading; shipper pays for unloading.